Engineering and Construction Company Seeks to Deliver Profitable Growth

A five-year plan is helping a global engineering and construction firm transform into a larger, more profitable, and more focused enterprise.

Delivering profitable growth is a key priority for a global leader in engineering and construction. Competitors had exhibited annual growth of 10-15%, and the company has developed a target to double in revenue within a five-year period while maintaining or improving margins.

The revenue target was annual growth of 15%, with 3-5 percentage point margin expansion.

Anticipated increase in frontier sector mix was 30-50%.

Targeted reduction in exposure in packages of E&C revenues was 35-50%.

The company is now implementing a strategy developed by BCG that focuses on selective global expansion, the elimination of noncore businesses to help focus the organization, and the development of a more efficient operating model, better project execution, and improved leadership. The strategy called for half of this growth to be achieved through acquisitions, either through a series of deals within each sector or a larger approach involving the acquisition of or merger with another leading engineering company across all sectors.

As a result of the new strategy, the company expects to become larger, more profitable, and better positioned to seize new opportunities for growth.

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